[Ord. 00010, 12/10/2001, Art. I]
The following terms wherever used or referred to in this Part
shall have the following meaning, except in those instances where
the context indicates otherwise:
ANNIVERSARY DATE
The first day of each year, including the year in which this
Plan is effective.
BOROUGH
The Borough of Akron, Lancaster County, Pennsylvania.
COMMITTEE
A Committee of Council members and Borough residents appointed
by the Borough Council President, which shall have the responsibility
to administer the terms and conditions of the Plan and this Part.
EMPLOYEE
A full time employee of the Borough of Akron except members
of the police force. A "full-time employee" is an employee who customarily
works an average of at least 35 hours in a week and 40 such weeks
in a year.
GROSS WAGES
All compensation of an employee while they are a participant,
including base wages, overtime and bonuses only, and excluding, among
other things, workman's compensation, unemployment compensation, disability
benefits, and the like.
NORMAL RETIREMENT DATE
The first day of the month coincident with, or following
the attainment of participant's 60th birthday, or the first day coincident
with or following the completion of six years of participation, whichever
is later.
PAST SERVICE
Those years or months which a participant worked as an employee
in service to the Borough prior to the effective date of this Part.
PLAN
The Akron Borough Nonuniformed Pension Plan.
SERVICE TO THE BOROUGH
Full-time employment by the Borough, including leaves of
absence granted by Council and absences due to illness, disability
and vacation leaves, provided the employee returns to the employ of
the Borough within the time his employment rights are protected by
law.
[Ord. 00010, 12/10/2001, Art. II, § 1]
There is hereby established the "Akron Borough Nonuniformed
Pension Plan," hereinafter referred to as the "plan."
[Ord. 00010, 12/10/2001, Art. II, § 2]
The effective date of the plan is January 1, 2001. The plan
year is the period of 12 consecutive months beginning on a January
1 and ending on the next December 31.
[Ord. 00010, 12/10/2001, Art. II, § 3]
All present full time employees of the Borough, except police
officers, employed on January 1, 2000, are eligible for membership
and shall become members of the plan. All future full-time employees,
except police officers, are eligible for membership and shall become
members of the plan on the date they commence employment as a Borough
employee.
[Ord. 00010, 12/10/2001, Art. II, § 4]
Except as provided in § 1-646, any employee who leaves
the service of the Borough before retirement under this plan must
qualify as a member upon reentering its service as if he/she had not
previously been an employee.
[Ord. 00010, 12/10/2001, Art. II, § 5]
The plan shall be financed by periodic payments made by the
Borough, as are set from time to time by resolution of the Council.
The Committee shall invest and reinvest the principal and income of
the fund and keep the fund invested, without distinction between principal
and income, in such lawful securities, annuities, or other investments
as the Committee shall deem advisable. Contributions shall be made
at such time as Council shall provide, but no later than September
of the year following the year in which the contribution is earned.
[Ord. 00010, 12/10/2001, Art. II, § 6; as amended
by Ord. 00018, 3/10/2003, § 6; and by Ord. 00039, 11/12/2007,
§ 2]
At the end of each year, the Borough shall reconcile the total
amount of state aid allocated and municipal contributions made to
the Nonuniformed Pension Plan with the plan's defined contribution
costs for that year. Any excess contributions will be transferred
to the Akron Borough Police Pension Plan as soon as possible.
[Ord. 00010, 12/10/2001, Art. II, § 7]
Participants who were employees on the effective date of the
plan shall receive vesting, contribution, or other credit for past
service to the Borough prior to January 1, 2001.
[Ord. 00010, 12/10/2001, Art. II, § 8]
A participant shall have a vested interest in the contributions
made on his behalf by the Borough according to years of qualified
participation in the plan, according to the following schedule:
Full Years of Participation
|
Percentage of Vested Interest in Contributions
|
---|
0 through 1
|
None
|
1
|
20
|
2
|
40
|
3
|
60
|
4
|
80
|
5
|
100
|
[Ord. 00010, 12/10/2001, Art. II, § 9]
Upon retirement, a participant shall receive as retirement benefits
an amount equal to the total of all employer contributions to the
plan together with all earnings thereon, as shown in the participant's
account balance at the time of retirement, adjusted according to the
vesting schedule set forth in § 1-649; provided, however,
that no retirement benefits need be paid until actual retirement.
[Ord. 00010, 12/10/2001, Art. II, § 10]
1. If a participant dies while an employee of the Borough, his beneficiaries
shall be entitled to receive the full amount of employer contributions,
together with all earnings thereon, as shown in the participant's
account balance at the time of death, as adjusted according to the
vesting schedule set forth in § 1-649.
2. If a former employee whose participation has ceased under § 1-653
dies, his beneficiaries shall be entitled to receive whatever benefits
said former employee would be entitled to receive under § 1-654.
3. Each participant may designate in writing a beneficiary or beneficiaries
for any death benefits at the time he enters the plan. In the absence
of the designation of beneficiary, any death benefits payable shall
be paid to the participant's estate.
[Ord. 00010, 12/10/2001, Art. II, § 11]
If a participant becomes totally disabled, he shall be entitled
to receive the same benefits payable under § 1-651 as if
he had died while an employee of the Borough. A participant shall
be deemed totally disabled for the purpose of this section only after
he has been unable to perform any work for the Borough for a period
of 35 consecutive weeks, and only if he submits to the Borough a certificate
of disability from the Social Security Administration.
[Ord. 00010, 12/10/2001, Art. II, § 12; as amended
by Ord. 00018, 3/10/2003, § 2; and by Ord. 00039, 11/12/2007,
§ 2]
Cessation of a participant's employment with the Borough prior
to the normal retirement date for reason other than death or total
disability shall terminate the participant's membership in the plan,
subject, however, to the participant's vested interest. Forfeitures
of any amount contributed by the Borough shall be used to reduce the
Borough's current year contribution requirements in the year of the
forfeiture, and shall not increase the interest of the remaining members
of the Akron Borough Nonuniformed Pension Plan. Any excess contributions
for the year resulting from forfeitures shall be handled in accordance
with § 1-647.
[Ord. 00010, 12/10/2001, Art. II, § 13; as amended
by Ord. 00018, 3/10/2003, § 3]
Former employees whose participation in the plan has ceased
pursuant to § 1-653 hereof, shall be entitled to receive,
upon 90 days advance written notice given by such former employee
or its authorized representative to the Borough Secretary, a total
of all vested employer contributions to the plan, together with all
earnings thereon as shown on the participant's account balance at
the time immediately prior to receipt of funds from the plan. Following
said ninety-day notice, the Borough shall, as soon as can be reasonably
accomplished thereafter, provide for the aforesaid distribution."
[Ord. 00010, 12/10/2001, Art. II, § 14]
A participant, eligible to retire at 60 years of age, may continue
in the employ of the Borough after his normal retirement date. No
benefits hereunder shall be received until actual retirement. The
employer shall continue to make contributions until the time of actual
retirement.
[Ord. 00010, 12/10/2001, Art. II, § 15]
It is the expectation of the Borough that it will continue the
plan indefinitely and make the required payments of it's contributions
hereunder, but the continuance of the plan is not assumed as a contractual
obligation of the Borough and the right is reserved by the Borough
at any time to reduce or discontinue its contributions hereunder.
[Ord. 00010, 12/10/2001, Art. II, § 16]
1. Upon termination of the plan or upon complete discontinuance of contributions
by the Borough, the plan funds shall be distributed as follows:
A. First, all retirement, death, and disability benefits then payable
shall be paid to participants entitled thereto.
B. Second, benefits shall be paid to all participants under § 1-650
as though they had retired with their then percentage vested benefits
immediately prior to termination of the plan.
C. Third, all remaining funds shall be paid into the Borough General
Fund.
[Ord. 00010, 12/10/2001, Art. III, § 1]
The plan is created for the exclusive benefit of the employees
of the Borough and shall be interpreted in a manner consistent with
their being employees' trusts.
[Ord. 00010, 12/10/2001, Art. III, § 2]
The plan is not to be construed as creating or changing any
contract of employment between the Borough and its employees and the
Borough retains the right to deal with its employees and to terminate
their employment at any time to the same extent as though these plans
had not been created. Nothing in these plans shall be construed as
limiting the right of the employer to change the compensation, salary,
or remuneration of any employee at any time.
[Ord. 00010, 12/10/2001, Art. III, § 3]
The costs and expenses of administering this plan shall be born
solely by the Borough, and shall not be charged against plan finances.
[Ord. 06-12-95B, 6/12/1995, § 1]
There is hereby established a deferred compensation plan to
be known as the "Akron Borough Nonuniformed Employees Deferred Compensation
Plan," which shall be made available to all full-time nonuniformed
employees of the Borough. This plan will set forth the obligations
of the Borough and the rights and privileges of the participants with
respect to his or her deferred compensation.
[Ord. 06-12-95B, 6/12/1995, § 2]
Eligible individuals may voluntarily elect to defer any portion
of their future unearned compensation by entering into a participation
(joinder) agreement, subject to the minimum and maximum amounts, as
specified in this agreement.
[Ord. 06-12-95B, 6/12/1995, § 3]
This plan shall become operative on July 1, 1995, Individuals
who desire to participate in the plan during the remainder of the
1995 calendar year shall elect to do so on or before the last pay
period of 1995.
[Ord. 06-12-95B, 6/12/1995, § 4]
It is the intention of said plan that the remittances made to
any carrier for the purchase of said contracts not to be considered
as current income to the participants for federal income tax purposes.
Therefore, the Borough shall have all ownership rights to such contracts
which shall not be held in any way as collateral security for the
purposes of fulfilling the obligations of the Borough, but shall be
held as a general, unrestricted asset.
[Ord. 06-12-95B, 6/12/1995, § 5]
This plan is revocable at the discretion of Borough Council
by adopting a revocation ordinance and no person shall have a vested
right to the continuation of the plan at any time.
[Ord. 06-12-95B, 6/12/1995, § 6]
Borough Council hereby authorizes the execution of the deferred
compensation administrative agreement set forth between the Borough
of Akron and the Aetna Life Insurance and Annuity Company. Hereafter
the Borough is authorized to enter into other agreements from time
to time, as the Borough Council shall (by Resolution) see fit.
[Ord. 06-12-95B, 6/12/1995, § 7]
The Borough hereby authorizes the Chairman of the Personnel
Committee and the Borough Secretary as the two members of the Deferred
Compensation Plan Committee and to act on behalf of the Borough Council
with respect to the purchase of contracts and to formulate rules and
procedures necessary to carry out the terms of the plan.
[Ord. 06-12-95B, 6/12/1995, § 8]
The Borough hereby adopts the Deferred Compensation Plan pursuant
to § 457 of the Internal Revenue Code of 1986, as amended.